Preposition Yourself For Your Business Loan

My experience with small business loan applicants reflects a reactionary mind set. In an effort to minimize the impact of taxes on income the tax preparers find every deduction, write off and loss possible, and some that are not possible. The end result appears to be very desirable until you apply for a loan. The people who decide if you get approved (underwriters) will be looking at hard documentation. Personal Financial Statements, Tax Returns and Credit reports. If real property is involved their could be surveys, environmental studies and leases to name a few. Most problems occur with income on tax returns. Many companies do such a good job of reducing their revenues that they appear to be broke on paper. Any business and it's owners should consider prepositioning itself/themselves for a loan in advance. If you think you might need funding in the near or far future should try to look good on their tax returns and financial statements both Business and Personal. Many of us are long on ideas and short on money. Don't cut yourself short by hiding too much of your income. If you are in good financial condition and it shows in your financial condition you may want to consider a line of credit now. Don't wait until you get into a cash flow squeeze to apply. It's like life insurance. Do not wait until you are sick to apply it is too late then.